HOW MUCH CAPITAL DO YOU NEED TO STARTUP | METASTARTUP #4

and so now that you decided to start a company we're gonna talk about the first most important topic that I want to tackle which is raising the capital for it now you might be thinking here just start a company where am I gonna raise capital from and the answer to that is you're gonna raise capital from yourself and people around you so this video is called marking off the capital and I'm going to define the rough capital estimates to run your company for 18 months just like if you were going to college you need to mark out enough capital and enough time to be able to be successful in my opinion anywhere between 10 to 20 lakhs and 18 months of time is the perfect amount to run any generic software startup if your startup requires a little more capital which is buying some equipment or doing some research and development or buying things in bulk then your capital requirements might be higher this 10 to 20 lakhs assumes that you're only going to be hiring anywhere between one and two people and both co-founders don't take a salary for 18 months in these 18 months we'll talk about the milestones required in a future episode to raise your future round of capital or better yet be profitable now a lot of you are probably thinking to yourself where am I going to get 10 to 20 lakhs from and the answer to this is that even if you go for a master's today it would cost you roughly about the same amount if you went somewhere abroad the new masters gonna cost you even more why would he spend so much on a masters when you're not even willing to spend that much on a real life business experience which is just running a start-up it confuses me that a lot of people would go abroad to learn business while they can use the same amount of capital to try pulling off that business by themselves I mean you will gain way more experience running a business on your own than reading anything about it I mean the experience of having hired people going through the daily grind sitting out there in the trenches trying to get your first customer is way more valuable than going to business school and learning from other people's experiences the entire point of this course is to arm you with enough knowledge for free so that they are able to pull off a star on your own without having to go to these schools so you watching this video means you can actually take the same 10 or 20 lakhs that you were gonna invest in business school to run your own startup now you can also run your startup in a much smaller amount of capital but there's an emotional cost to going back and raising more capital from your parents or your friends or your relatives or whatever it not just distracts you it also causes a loss of confidence from your parents and relatives and whoever because they're seen you come back for capital multiple times instead it's better to go and ask for a large chunk of money keep that money in the bank and use it wisely in one shot that's it for this video I just wanted to talk about the amount of capital you need to keep aside in the next video we're gonna talk about naming your company